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FRB, FDIC, OCC, OTS, FTC: Public Comment on Proposed FACT Act Disposal Rule under §216 of the Act

ABA Contact: Richard Riese
Published: June 8, 2004 Federal Register
Comments Due: July 23, 2004
Disposition: Filed July 23, 2004

Summary

Pursuant to the Fair and Accurate Credit Transactions Act, the banking agencies are requesting comment on a proposal that would require each financial institution to develop, implement, and maintain appropriate measures to properly dispose of consumer information derived from consumer reports to address the risk associated with identity theft. The proposal amends  the Agencies' Guidelines issued pursuant to Section 501 and 505 of the Gramm-Leach-Bliley Act.

The Federal banking agencies are requesting comment on an interagency proposal to implement section 216 of the Fair and Accurate Credit Transactions Act of 2003 ("the FACT Act") by amending the Interagency Guidelines Establishing Standards for Safeguarding Customer Information ("Guidelines"). The proposal would require each financial institution to include as part of its information security program appropriate measures to properly dispose of consumer information derived from consumer reports to address the risks associated with identity theft.  In addition, the FTC is seeking comment on its comparable rule implementing a FACT Act Disposal Rule.

ABA's Comments

ABA's main points are to emphasize that the disposal of consumer information should be clearly defined to pertain to personally identifiable consumer report information and to recommend that the FTC exempt any entity from its rule that is subject to the banking agencies' Guidelines in order to eliminate the undue compliance burden that would occur from redundant regulatory oversight if the FTC's applied its Disposal Rule to bank or savings association subsidiaries or affiliates.

2004 Regulations Chart
Federal Register
Comment Letter

Questions? Please contact Richard Riese for more information.